The past several years have been very profitable for many real estate investors. However, the market is changing and it may be time for a lot of investors to be on the lookout for latest strategy. For those who own rentals, the trend was to buy a rental property, see it appreciate, and buy another rental property using a 1031 tax-deferred exchange to eliminate current capital gains taxes on the profits. However there are not as many solid investment properties accessible in the real estate market today. The increase in the prices are real estate has not remained in balance together with the rental income. If you’re thinking about selling your investment properties now, you probably are concerned about the large tax bill you’ll face.
Low net rent income, demanding tenants, and a large amount of equity at risk have caused almost all real estate owners to consider selling their real estate. However, there are countless investors who feel that they are stuck with the property right and now they would rather sell it. A lot of people are hesitant to reinvest in a new 1031 exchange property due to the fact that its low rental rates, but are unwilling to cash out on the property out of fear of paying considerable capital gains taxes. The news today is that for many owners and investors, it is important to understand that a Private Annuity Trust offers a way to defer paying capital gains taxes, create a lifetime income and protect your assets as well. If you need more details, visit https://www.huffingtonpost.com/topic/investment.
With the Private Annuity Trust, the investors of real estate have a legal and safe way to exit from the labor of property management, the aggravations of dealing with the tenants, and the anxiety of thinking how the property values will have a fare in the existing real estate market. With the Trust, there’s no pressure to reinvest right away to avoid paying capital gains. You may learn more here.
Prior to the sale of the property is final, the property is transferred into the Private Annuity Trust. The Trust assets are protected from creditors and lawsuits, and the assets in the Trust can at the end of the day pass to the seller’s beneficiaries without worrying about the 46% estate tax rate which is the prevailing rate. Many investors at 1031gateway.com are concerned that due to significant property appreciation over the last several years, they are now too heavily invested in real estate.
Payments from the trust don’t need to begin right away-not until age seventy. If you’re ready to take back the reins on your investment vision, talk to a professional today to explore how Private Annuity Trusts may benefit your particular situation.